Should You Sell Moody’s (MCO) Amid AI Disruption Fears?

We just covered the 10 Best Stocks to Buy Now According to Warren Buffett. Moody’s Corp (NYSE:MCO) ranks #5  (see the 5 best stocks to buy now here).

Moody’s Corp (NYSE:MCO)’s shares recently took a hit amid fears that AI could erode the company’s moat around proprietary data. However, Moody’s data moat is strong because it is auditable and backed by decades of reputation. Investors pay Moody’s Corp (NYSE:MCO) because they need a legal guarantee and an audit trail that an AI agent simply can’t provide. It ranks sixth in our list of the best stocks to buy according to Warren Buffett.

Moody’s Corp (NYSE:MCO) is using AI to expand its business.  It’s integrating AI directly into customer workflows via partnerships with Salesforce, ServiceNow, and Databricks. Moody’s Corp (NYSE:MCO) says customers who have upgraded to its GenAI solutions are being retained at a 97% rate and are growing their spending at twice the rate of traditional customers.

Qualivian Investment Partners explained some key highlights of MCO’s strong business performance in its investor letter. Read it here.

Photo by jason briscoe on Unsplash

While we acknowledge the risk and potential of MCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MCO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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